FamPay, a fintech startup focussed on teenagers, has raised USD 38 million (about Rs 278.4 crore) in funding, led by existing investors Sequoia Capital India and Elevation Capital.
A statement said that the remaining early investors, Venture Highway, Global Founders Capital, Y Combinator, and new Global Investors like Rocketship VC, General Catalyst, and Greenoaks Capital also participated in the Series A round. This latest round of funding will be used to build a leadership team to further fuel growth, it added.
FamPay makes it easier for teenagers to carry out offline and online payments through FamPay app as well as FamCard. FamPay also offers gamified savings experiences along with payment products.
Kush Taneja, the co-founder of FamPay, said that FamPay is creating a rare market segment today. It’s teenagers’ first step at being responsible with money and their first step into adulthood. We plan to stay with them from the first step and throughout their financial journey by evolving the product as they grow.
The company has been averaging 100 percent month-on-month growth and has crossed 2 million registered users within 8 months of its launch.
In March 2020, the company announced raising USD 4.7 million in seed funding from Y Combinator, Venture Highway, Sequoia Capital India, and Global Founders Capital. Angel investors, Twitch co-founder Kevin Lin, Robinhood co-founder Vladimir Tenev, CRED founder Kunal Shah and Pine Labs CEO Amrish Rau also participated in this seed funding.
FamPay was launched in 2020 by Kush Taneja and Sambhav Jain and is a marketing and distribution partner of IDFC FIRST Bank Prepaid Card. Around 40 percent of the Indian population is below 18 and every year millions of new teenagers will start using their first smartphone. FamPay predicts the same and plans in becoming their go-to brand, said Sambhav Jain, co-founder of FamPay.
Mridul Arora, Partner, Elevation Capital also said that they are delighted to partner with Sambhav, Kush, and the FamPay team in their mission to rethink banking for teenagers. They are extremely impressed by FamPay’s product growth trajectory, innovations, and customer love which tell that FamPay is bound to become the destination app for GenZ and gateway for their access to fintech and beyond.
With the population of adolescents in India being substantial, they believe that catering to this unserved audience with innovative products customized to their needs and behaviors will create a very valuable business, Arora added.
They realized that FamPay understood their users and had very distinct views on how to serve them well. The team is excited to go all in and is excited to work with them to help build FamPay over the next many years said Shailendra Singh, Managing Director of Sequoia Capital (India) Singapore.
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